Octopus Real Estate provides £18.3m facility for development site in York
Octopus Real Estate has agreed to provide Heworth Green Developments, under the North Star banner, with an £18.3m facility secured against a major development site in York.
The 8.95-acre former National Grid site has planning consent for 607 homes, as well as for retail or community use floorspace.
The facility will be used to refinance current debt, acquire the remaining part of the site, and finance the ground works and removal of a decommissioned gas holder.
Work will start on the development later this month with the remediation and infrastructure works, allowing the construction of the new homes on the site to follow this.
The £18.3m facility is the next funding milestone in the £85m gross development value (GDV) journey.
Moda Living has exchanged contracts for the private rented sector (PRS) element of the site, while North Star will continue to develop 215 open market sale units.
Ludo Mackenzie, head of commercial property at Octopus Real Estate, said: “The Heworth site is the largest residential development opportunity in York.
“It has taken many years to get to a position where works can commence, and we are proud to be involved.”
A spokesperson for North Star said: “Securing this funding deal is another major milestone in the project.
“The journey to transform this large, brownfield site into a vibrant new community has taken over 18 months so far and we are very excited to see it now coming to fruition.
“This will now enable us to start construction works on the site, and the first step will be to remediate the site which will start very shortly.
“Our aim is to create a high-quality sustainable development that York can be proud of and we are committed to delivering the development, even in these challenging times.”
Tom Frank, managing director of Ice Cubed Commercial Finance, who acted as the adviser, said: “Arranging the finance on this development has been complex, especially in the current challenging conditions.
“Successful closing of the deal is testament to our close relationship with Octopus Real Estate and the client.
“We are very proud to play our part in delivering this fantastic high-quality development so close to our York office.”